HomeMy Public PortalAboutPurchasing PolicyPage 1 of 9
CITY OF PARKVILLE
Policy Title: Purchasing Policy
Policy Number: 100-02 Category: Board
Effective Date:
February 5, 2013
Resolution No. 02-01-13
Updates:
Res. 23-014 -- 12/19/23
Res. 17-016 – 6/6/17
Res. 16-012 – 8/2/16
Res. 10-02-14 – 10/20/14
Ordinance 2674 – 3/5/13
I. PURPOSE
As a public entity the City is a steward of public funds. The primary purpose of this Purchasing
Policy is to ensure that the City obtains goods and services through a competitive process to
obtain the best value, cost and quality. This Policy is not an exclusive list of procurement options
available to the City, and such options may be pursued in a manner consistent with applicable
law, e.g., construction manager at-risk projects (Section 67.5050, RSMo.; design-build projects
(Section 67.5060, et seq., RSMo.) In no instance will this Policy apply to the extent that doing so
would be inconsistent with superseding state or federal law, or otherwise conflict with applicable
laws, regulations, or grant-based requirements or conditions.
II. GENERAL REQUIREMENTS
A. Revisions: Formal amendments to the Purchasing Policy require Board of Aldermen
approval.
B. Administrative Policies: The City Administrator may approve administrative policies to
supplement this Purchasing Policy.
C. Department Head Authority: Department Heads have the responsibility to make certain
that purchases are within the scope of the adopted budget. Department Heads have the
authority to approve acquisitions in the manner described in this Policy.
D. Familiarity with Policy. All personnel of the City responsible for purchases shall become
familiar with and follow the City’s policies and procedures as they relate to purchasing.
E. Local Preference. It is the City's intention to purchase from local suppliers, as applicable,
as it selects the best and most reasonably priced source for each transaction. The local
residence of a supplier (City, County, and State) may be a factor considered in selecting
among bidders on a purchase. It is the determination of the Board of Aldermen that, in
certain instances, choosing a local supplier serves the valid public purpose of supporting
local businesses that, among other attributes, pay taxes to the City. The City of Parkville
desires to support local Parkville business whenever possible by purchasing locally if
feasible and in compliance with this Policy. Whenever satisfactory goods and services are
available locally, local Parkville businesses are invited to provide bids to supply these
needs. Preference to local Parkville shall be given in instances in which quality and service
are equal and the local Parkville business bid/quote does not exceed the submitted lowest
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out-of-city, out-of-county, or out-of-state bid/quote by more than three percent (3%).
Preference to Platte County (outside Parkville) shall be given in instances in which quality
and service are equal and the local Platte County business bid/quote does not exceed the
submitted lowest out-of-county or out-of-state bid/quote by more than two percent (2%).
Preference to the State of Missouri (outside Parkville and Platte County) shall be given in
instances in which quality and service are equal and the local State of Missouri business
bid/quote does not exceed the submitted lowest out-of-state bid/quote by more than one
percent (1%). The maximum preference allowed for local preference is $30,000.
F. Fixed Assets. Upon purchasing any tangible asset (property, plant, or equipment) each
Department Head will consult with the City’s Deputy City Administrator/Finance Director,
or his/her designee, to determine whether such asset should be included in the City’s
ongoing fixed asset inventory. If so, a complete description of the asset being purchased
and its value will be provided to the Finance Department for inclusion in the fixed asset
inventory.
G. Standard Documents. The City has established the following standard purchasing
document templates: work authorization, professional services agreement, small
construction contract for maintenance (with notice to bidders), small construction contract
for new construction (with notice to bidders), and large construction contract (with sealed
bids project manual). Section IV of this Purchasing Policy explains the appropriate
purchasing document to use for each purchasing circumstance. The templates may be
amended from time to time with approval from the City Administrator and City Attorney.
Agreements that are different than these templates may be used when determined to be
appropriate by the City Attorney. An invoice and/or receipt is required to process payment
for all approved purchases, in addition to the applicable purchasing document.
H. Purchases Supported by Grant Funds. Department Heads shall review all
requirements for grant funding to ensure the procurement process required as a condition
to receiving said grant funds are complied with during the procurement of the item. The
City Administrator will assist in the inclusion of all required procedures that are in addition
to the requirements of this Policy.
I. Work Authorization and E-Verify. For any contract for services greater than $5,000, the
successful bidder shall comply with Section 285.530, RSMo. as amended, and (1) provide
by sworn affidavit affirmation that it does not knowingly employ any person who is an
unauthorized alien and (2) provide documentation affirming its enrollment and
participation in a federal work authorization program with respect to the employees
working in connection with this contract. The required documentation affirming enrollment
must be from the federal work authorization program provider. Letter from respondent
reciting compliance is not sufficient. When applicable, solicitations shall require the signed
and notarized Work Authorization Affidavit and the electronic signature page from the E-
Verify program prior to the issuance of a contract.
J. Prevailing Wage. Contracts for construction or major repair projects that have an
estimated or actual expenditure of $75,000 or more shall comply with Section 290.210,
RSMo. et seq, as amended. Missouri’s prevailing wage law establishes a minimum wage
for certain projects. For assistance determining if a project is prevailing wage, contact the
City Attorney.
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III. PURCHASING AUTHORITY
A. The City of Parkville Board of Aldermen has delegated the authority to make purchases
as follows:
a. Department heads are authorized to approve expenditures up to $10,000
provided that funds budgeted are equal to or greater than the cost of the item.
The City Administrator is authorized to restrict departmental spending on an as-
needed basis, such as in the event that revenues fail to meet annual budget
projections.
b. The Deputy City Administrator/Finance Director is authorized to approve
expenditures between $10,001 and $20,000, provided that funds budgeted are
equal or greater than the cost of the item.
c. The City Administrator is authorized to approve expenditures between $20,001
and $50,000 provided that funds budgeted are equal to or greater than the cost of
the item. When submitted by a department head or other authorized staff, the
request should be accompanied by a written recommendation to City
Administrator.
d. The Finance/Audit Committee must make a recommendation to the Board of
Aldermen for all purchases of more than $50,000. The Finance/Audit Committee
recommendation may be waived for time sensitivity or other special
circumstances that warrant immediate action by the Board of Aldermen. The
Board of Aldermen must approve all purchases of more than $50,000. Each
request shall include a staff recommendation with the relevant background
information. A budget impact should be included with all requests.
B. Projects may not be broken down into smaller projects for the purpose of exceeding
purchasing authority.
C. All purchases made by the City must be approved by the Board of Aldermen through
majority approval of the Accounts Payable Report, generally on a bi-monthly basis at
scheduled legislative meetings.
IV. PROCUREMENT REQUIREMENTS
A. Purchases For Goods and Materials, Vehicles and Equipment, New Construction,
and Maintenance and Repair
a. A minimum of three quotes are required, whenever this is possible, for any
purchases costing more than $2500 and less than $25,000. Quotes should be
documented, whether the quote is received in writing or over the phone.
Justification should be provided in writing to the purchasing authority if it is not
possible to obtain three quotes.
b. Any purchase of $25,001 and up to $50,000 may be made by adequate and
reasonable competition by written quotation, obtaining a minimum of three written
quotations for the purchase. Adequate records to document the competition shall
be maintained. Justification should be provided in writing to the purchasing
authority if it is not possible to obtain three quotes.
c. Sealed bids are required for all purchases of goods and materials with a total
value exceeding $50,000.
i. A Notice to Bidders for purchases totaling more than $50,000 shall be
advertised to all known local and other prospective and qualified bidders
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and shall be posted on the City’s official website.
ii. The City Clerk, or authorized City personnel, shall open all sealed bids
and read them aloud in the presence of at least one (1) witness. A bid
tabulation of all bids received will be on file in the City Clerk’s Office for
public inspection.
iii. The Board of Aldermen shall award the bid to the lowest responsible
bidder whose bid is in the best interest of the City.
iv. The City reserves the right to accept or reject any or all bids and to waive
any provisions or technicalities therein.
v. The sealed bidding requirements may be waived by the Board of
Aldermen for emergencies or other special circumstances.
vi. For contractual, commodities, vehicles and equipment purchases, staff
should consult with cooperative purchasing resources such as the State
of Missouri, the Kansas City Regional Purchasing Cooperative (KCRPC),
GSA, Sourcewell, etc., to determine if there are any state or regional
cooperative purchasing contracts for the specified vehicle or equipment.
d. For the purchase of used vehicles and equipment, staff shall attempt to obtain a
minimum of three quotes for similar products that meet the minimum
specifications of the required purchase. Staff may request advance approval from
the applicable purchasing authority to expend up to a maximum specified amount
for a product meeting established specifications. Staff should research all
available listings (internet advertisements, newspaper advertisements, local
dealers, auctions, etc.) to find the best product to meet the need of the purchase
at the lowest possible price.
e. When applicable, the City may furnish a sales tax exemption certificate number
as supplied by the State of Missouri in accordance with state law.
f. All new construction purchases in the amount of $50,000 or less must be
accompanied by a small construction contract. All new construction purchases in
excess of $50,000 must be accompanied by a large construction contract. The
appropriate construction contract shall be made part of the sealed bid package
and approved by the contractor prior to approval by the appropriate purchasing
authority. Upon approval, the appropriate Department Head shall forward an
executed copy of the construction contract to the City Clerk, along with any
applicable attachments including the insurance certificate.
g. Although quotes or sealed bids are desired to the extent possible, routine repairs
and maintenance may be performed at pre-approved suppliers/shops. This is
intended to address the impracticality of getting bids for certain types of work. For
example, where engine parts must be disassembled to determine the work that
needs to be done, or where time constraints make obtaining bids impractical.
h. All maintenance and repair purchases in the amount of $25,000 or less must be
accompanied by a work authorization. All maintenance and repair purchases in
excess of $25,000 but less than $50,000 must be accompanied by a small
construction contract. All new construction purchases in excess of $50,000 must
be accompanied by a large construction contract. The appropriate purchasing
document shall be made part of the sealed bid package and approved by the
contractor prior to approval by the appropriate purchasing authority. Upon
approval, the appropriate Department Head shall forward an executed copy of
the work authorization or construction contract to the City Clerk, along with any
applicable attachments including the insurance certificate.
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B. Professional Services (Other than Engineering, Architectural, or Land Surveying
Services Covered by Section IV.D, below).
a. When the professional services fee shall not exceed $25,000 the City
Administrator, with input from appropriate City staff, may select a firm or
individual based upon the particular firm’s or individual’s expertise, previous
performance, competitive pricing, and readiness for the service requirement of
the City.
b. In the event the fees for professional services on any proposed matter are
estimated to exceed $25,000, a Request for Proposals (RFP) or Request for
Qualifications (RFQ) process will be utilized and the following will apply:
i. The City will obtain necessary professional services on the basis of
demonstrated competence and qualifications for the type of service
needed at fair and reasonable prices.
ii. Prices shall not be the principal factor on which professional services are
selected.
iii. Preference shall be given to qualified professional firms having a principal
office within the Parkville city limits, recognizing the benefits to the local
economy realized through spending local dollars locally. Preference may
also be given to qualified professional firms that have demonstrated a
commitment to the community through membership in the Parkville Area
Chamber of Chamber and EDC (PACE).
iv. If the City and/or a private developer have invested time and money in a
project for which a professional firm has already been involved in
preliminary work, the Board of Aldermen may select that firm on the basis
of City staff’s recommendation or a developer’s request, assuming a
reasonable fee can be negotiated.
v. RFQs or RFPs will be advertised on the City’s website and sent to
interested firms.
vi. A selection committee reviews all proposals, conducts interviews (if
needed), checks references (if needed), and makes a recommendation to
the purchasing authority.
vii. Staff is authorized to negotiate a fee and scope of services with the
preferred vendor as recommended by the selection committee. The
scope and fee must be incorporated into a professional services
agreement for review and approval by the relevant purchasing authority. If
an agreement cannot be reached on the scope and fee, the purchasing
authority may authorize staff to negotiate with the second choice of the
selection committee, and so on, until a satisfactory agreement is
negotiated.
c. All professional services must be accompanied by a professional services
agreement. Depending on the scope and nature of the project, and with City
Attorney approval, a customized agreement may be substituted for the standard
professional services agreement upon request of the vendor. Upon approval, the
appropriate Department Head shall forward an executed copy of the professional
services agreement to the City Clerk, along with any applicable attachments
including the insurance certificate.
C. Emergencies
a. An emergency is defined as any instance in which either the City's infrastructure
or the City's citizens or their property are in jeopardy, and timeliness is crucial.
b. The Mayor or City Administrator can approve up to $50,000 for non-sewer related
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emergencies, and up to $150,000 for an emergency purchase when the expense
will be charged to the City's Sewer Fund.
c. The Mayor and the City Administrator may not combine spending authority for the
purpose of increasing the amount that can be approved.
d. As a courtesy, the City Administrator or Mayor will notify Board of his/her action,
in writing, via the most expeditious method possible. This is not an approval step.
e. To the extent possible, the City will enter into multi-year emergency services
contracts for routine services such as plumbing, electricity, etc. in order to pre-
establish labor and materials fees.
f. If an existing emergency services contract does not exist for a required purchase,
or the emergency services contractor cannot respond in a timely manner, staff
shall attempt to obtain a minimum of three quotes from other providers if the
process does not jeopardize the timeliness of addressing the emergency.
g. In the absence of an existing emergency services contract, a work authorization
should be executed in advance of the emergency purchase. If a work
authorization may not be executed in a timely manner, staff should attempt to
document the scope and fee in writing with the contractor via email or an on-site.
D. Qualifications Based Selection (QBS). The QBS process must be used for selection
of professional services consultants for architecture, engineering, and land surveying
services in accordance with Section 8.285, RSMo. et. seq., as amended. QBS may be
used for other types of services allowed or required by law and determined by the City
Administrator.
a. Whenever architectural, engineering, or land surveying, services are needed, the
Department Head or designated representative of the City department
conducting the solicitation shall prepare a Request for Qualifications (RFQ). The
RFQ will include a description of the project or services required and the criteria
to be used in evaluating responses from interested professionals. Criteria should
be tailored for the specific project or services needed and may include such
items as:
i. The specialized experience and technical competence of the respondent
with respect to the type of services required;
ii. The capacity and capability of the respondent to perform the requested
work;
iii. The past record of performance of the respondent with respect to such
factors as control of costs, quality of work, and ability to meet schedules;
iv. The respondent’s familiarity with the area in which the project is located;
and/or
v. The respondents’ understanding of the required services and specific
ways in which the firm is most qualified to provide those services.
b. When an RFQ is used, a selection committee shall be established by the
Department Head or the City Administrator to review the qualifications. Each
committee member will score each respondent’s response according to the
criteria set forth in the RFQ. The scoring of respondents by the committee will be
used to determine the top-rated respondent, which may be interviewed at the
discretion of the Department Head or the City Administrator. If interviews are
conducted, the respondents are again scored after the interviews according to
the criteria and a final scoring by the committee will determine the most
responsive and qualified respondent(s). The solicitation file shall contain
documentation of the basis for selection.
c. If the Department is unable to negotiate a satisfactory contract with the selected
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respondent, those negotiations shall be terminated. Negotiations shall then
commence with the second highest scoring respondent. If there is failure to reach
agreement with the second respondent, the process will be repeated until a
contract has been successfully negotiated. At the conclusion of negotiations, the
City should request a fully executed best and final offer (BAFO) from an
authorized agent of the selected firm(s) to document any changes made during
the negotiation process. Said BAFO shall be incorporated into the applicable
contract/agreement. If there is a failure to negotiate a contract with all of the most
responsive and qualified, top-rated respondents, as determined by the
Department Head or the City Administrator, the Department Head or the City
Administrator shall reevaluate the necessary services and scope of work and re-
issue a revised RFQ if appropriate and proceed in accordance with the
provisions of this article.
V. DISPOSAL OF CITY PROPERTY
A. Approval to Dispose of Property. The City Administrator or his/her designee shall give
final approval in writing before any City item of personal property is disposed of or
transferred from a City Department.
B. Surplus Assets. When an item of personal property is no longer needed by a City
Department, the respective Department Head should attempt to dispose of the item
according to following steps, in priority order:
a. Redistribute the item within the City to another Department.
b. Trade or sell the item “as is” through available markets approved by City
Administrator, including but not limited to online or live auctions.
c. Give the item to another local governmental agency or local non-profit agency.
d. Items which are damaged or have a nominal value may be recycled or disposed
as waste.
C. Disposal of Real Property. The sale or transfer of real estate requires prior approval
by the Board of Aldermen.
D. Prohibitions. Under no circumstances will any employee, or family-member of an
employee, have access to or ownership of any asset that is being disposed of in
accordance with this Policy.
E. Computing Technology. Regardless of how computing equipment is disposed of, all
data residing on any computer or other electronic storage device will be removed from
the equipment prior to disposal.
F. Other Fixed Assets. Prior to disposing of City assets, each Department Head will
determine whether such asset is part of the City’s ongoing fixed asset inventory. If so, a
complete description of the asset being disposed of will be sent to the City’s Deputy City
Manager/Finance Director or his/her designee.
VI. ALTERNATIVE PROCUREMENT METHOD
A. Cooperate Purchasing. Cooperative Purchasing is a form of procurement that can take
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many forms. Common forms used by the City are:
a. Two or more entities combine requirements and solicit bids or offers for goods or
services.
b. Entities include terms in their solicitations that allow a similar entity to piggyback
on the awarded contract.
c. Third Party Aggregators that bring multiple entities together to represent their
requirements resulting in the award of contracts.
A cooperative contract is primarily intended for purchases of goods and services. If a
Department desires to use a cooperative contract for services, please contact the City
Administrator. For approval purposes, the approval levels defined in Section IV shall
apply. The City Administrator shall have the authority to approve the City’s participation
in cooperative contract(s).
The City Administrator and/or City Attorney will review cooperative contract(s) to make
sure they are competitively awarded and cost effective, and contain all of the legally
required terms and conditions, including E-Verify, non-appropriation, prevailing wage,
etc... If necessary, the City may amend the cooperative contract to add legally required
terms and conditions. The City may also negotiate the fees and costs of a cooperative
contract, provided the goods and services of the cooperative contract do not change.
The Department designee will determine if the contract meets the Department’s needs.
If service or work is to be performed on City property, then review the contract’s included
insurance as it may not include adequate coverage and protection for the City. Contact
the City Administrator for assistance.
VII. EXCEPTIONS TO COMPETITION REQUIREMENTS.
A. Utility purchases (including but not limited to electricity, water, sewer, and gas) are
exempt from the procurement requirements of this Policy. The City Administrator, or
his/her designee, is responsible for reviewing all bills for accuracy before payment and to
implement methods to control and reduce costs, to the extent practical. Payments must
be approved by the Board of Aldermen through majority approval of the Accounts
Payable Report.
B. Sole Source. Competitive bids or proposals are not required if the City Administrator has
determined in writing one or more of the following conditions are met:
a. Goods or services are proprietary and/or only available from the manufacturer, a
single distributor, or service provider;
b. Based on past procurement experience, it is determined that only one (1)
distributor services the region in which the goods or services are needed;
c. Goods or services are available at a discount from a single distributor for a
limited period of time;
d. Company has significant previous or specialized knowledge on a proposed
project that would result in significant monetary and/or time savings in completion
of the project; or
e. To maintain uniformity and consistency in an area (e.g. decorative light pole or
other infrastructure), a good must be purchased from a single distributor. If a
product or service can be provided by more than one company, it generally does
not qualify as a sole source unless it fits within one of the exceptions above.
C. Any purchase in which the City Administrator determines that a waiver is in the best
interest of the City and not in violation of applicable state or federal law.
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VIII. PAYMENT/OBLIGATION(S) METHODOLOGY:
A. The City of Parkville payment processing for payroll, contractual, commodities,
equipment and all obligations of the city are processed in accordance with 79.300,
RSMo. et. seq., as amended.
a. This requires the City Treasurer receive and account for all obligations of the city,
with payments to be signed by the mayor, and attested by the City Clerk. The
functionality is as follows:
i. Finance Department processes items for payment,
ii. Accounts Payable/Payroll Register is approved by both the Treasurer and
the Mayor,
iii. Checks are printed or payments processed via ACH,
iv. Signed Accounts Payable Register is reported (attested) at the next
available Board of Aldermen meeting.